§5A-3-45. Disposition of surplus state property; semiannual
report; application of proceeds from sale.
(a) The state agency for surplus property has the exclusive
power and authority to make disposition of commodities or
expendable commodities now owned or in the future acquired by the
state when the commodities are or become obsolete or unusable or
are not being used or should be replaced.

(b) The agency shall determine what commodities or expendable
commodities should be disposed of and make disposition in the
manner which will be most advantageous to the state. The
disposition may include:

(1) Transferring the particular commodities or expendable
commodities between departments;

(2) Selling the commodities to county commissions, county
boards of education, municipalities, public service districts,
county building commissions, airport authorities, parks and
recreation commissions, nonprofit domestic corporations qualified
as tax exempt under Section 501(c)(3) of the Internal Revenue Code
of 1986, as amended, or volunteer fire departments in this state
when the volunteer fire departments have been held exempt from
taxation under Section 501(c) of the Internal Revenue Code;

(3) Trading in the commodities as a part payment on the
purchase of new commodities;

(4) Cannibalizing the commodities pursuant to procedures
established under subsection (g) of this section;

(5) Properly disposing of the commodities as waste;

(6) Selling the commodities to the general public at the
posted price or to the highest bidder by means of public auctions
or sealed bids, after having first advertised the time, terms and
place of the sale as a Class II legal advertisement in compliance
with the provisions of article three, chapter fifty-nine of this
code. The publication area for the publication is the county in
which the sale is to be conducted. The sale may also be advertised
in other advertising media that the agency considers advisable.
The agency may sell to the highest bidder or to any one or more of
the highest bidders, if there is more than one, or, if the best
interest of the state will be served, reject all bids; or

(7) Selling the commodities to the highest bidder by means of
an Internet auction site approved by the director, as set forth in
an emergency rule pursuant to the provisions of chapter
twenty-nine-a of this code.

(c) Upon the sale to the general public or transfer of
commodities or expendable commodities between departments, or upon
the sale of commodities or expendable commodities to an eligible
organization, the agency shall set the price to be paid by the
receiving eligible organization, with due consideration given to
current market prices.

(d) The agency may sell expendable, obsolete or unused motor
vehicles owned by the state to an eligible organization, other than
volunteer fire departments. In addition, the agency may sell expendable, obsolete or unused motor vehicles owned by the state
with a gross weight in excess of four thousand pounds to an
eligible volunteer fire department. The agency, with due
consideration given to current market prices, shall set the price
to be paid by the receiving eligible organization for motor
vehicles sold pursuant to this provision: Provided, That the sale
price of any motor vehicle sold to an eligible organization may not
be less than the "average loan" value, as published in the most
recent available eastern edition of the National Automobile
Dealer's Association (N.A.D.A.) Official Used Car Guide, if the
value is available, unless the fair market value of the vehicle is
less than the N.A.D.A. "average loan" value, in which case the
vehicle may be sold for less than the "average loan" value. The
fair market value shall be based on a thorough inspection of the
vehicle by an employee of the agency who shall consider the mileage
of the vehicle and the condition of the body, engine and tires as
indicators of its fair market value. If no fair market value is
available, the agency shall set the price to be paid by the
receiving eligible organization with due consideration given to
current market prices. The duly authorized representative of the
eligible organization, for whom the motor vehicle or other similar
surplus equipment is purchased or otherwise obtained, shall cause
ownership and proper title to the motor vehicle to be vested only
in the official name of the authorized governing body for whom the
purchase or transfer was made. The ownership or title, or both, shall remain in the possession of that governing body and be
nontransferable for a period of not less than one year from the
date of the purchase or transfer. Resale or transfer of ownership
of the motor vehicle or equipment prior to an elapsed period of one
year may be made only by reason of certified unserviceability.

(e) The agency shall report to the Legislative Auditor,
semiannually, all sales of commodities or expendable commodities
made during the preceding six months to eligible organizations.
The report shall include a description of the commodities sold, the
price paid by the eligible organization which received the
commodities and to whom each commodity was sold.

(f) The proceeds of the sales or transfers shall be deposited
in the State Treasury to the credit on a pro rata basis of the fund
or funds out of which the purchase of the particular commodities or
expendable commodities was made: Provided, That the agency may
charge and assess fees reasonably related to the costs of care and
handling with respect to the transfer, warehousing, sale and
distribution of state property disposed of or sold pursuant to the
provisions of this section.

(g)(1) For purposes of this section, "cannibalization" means
the removal of parts from one commodity to use in the creation or
repair of another commodity.

(2) The director of the Purchasing Division shall propose for
promulgation legislative rules to establish procedures that permit
the cannibalization of a commodity when it is in the best interests of the state. The procedures shall require the approval of the
director prior to the cannibalization of the commodity under such
circumstances as the procedures may prescribe.

(3) (A) Under circumstances prescribed by the procedures,
state agencies shall be required to submit a form, in writing or
electronically, that, at a minimum, elicits the following
information for the commodity the agency is requesting to
cannibalize:

(i) The commodity identification number; (ii) the commodity's
acquisition date; (iii) the commodity's acquisition cost; (iv) a
description of the commodity; (v) whether the commodity is operable
and, if so, how well it operates; (vi) how the agency will dispose
of the remaining parts of the commodity; and (vii) who will
cannibalize the commodity and how the person is qualified to remove
and reinstall the parts.

(B) If the agency has immediate plans to use the cannibalized
parts, the form shall elicit the following information for the
commodity or commodities that will receive the cannibalized part or
parts: (i) The commodity identification number; (ii) the
commodity's acquisition date; (iii) the commodity's acquisition
cost; (iv) a description of the commodity; (v) whether the
commodity is operable; (vi) whether the part restores the commodity
to an operable condition; and (vii) the cost of the parts and labor
to restore the commodity to an operable condition without
cannibalization.

(C) If the agency intends to retain the cannibalized parts for
future use, it shall provide information justifying its request.

(D) The procedures shall provide for the disposal of the
residual components of cannibalized property.

(h) (1) The director of the Purchasing Division shall propose
for promulgation legislative rules to establish procedures that
allow state agencies to dispose of commodities in a landfill, or by
other lawful means of waste disposal, if the value of the commodity
is less than the benefit that may be realized by the state by
disposing of the commodity using another method authorized in this
section. The procedures shall specify circumstances where the
state agency for surplus property shall inspect the condition of
the commodity prior to authorizing the disposal and those
circumstances when the inspection is not necessary prior to the
authorization.

(2) Whenever a state agency requests permission to dispose of
a commodity in a landfill, or by other lawful means of waste
disposal, the state agency for surplus property has the right to
take possession of the commodity and to dispose of the commodity
using any other method authorized in this section.

(3) If the state agency for surplus property determines,
within fifteen days of receiving a commodity, that disposing of the
commodity in a landfill or by other lawful means of waste disposal
would be more beneficial to the state than disposing of the
commodity using any other method authorized in this section, the cost of the disposal is the responsibility of the agency from which
it received the commodity.